Black Sea Trade & Development Bank Opens Second Mortgage Credit to Azerbaijani Banks
Azerbaijan, Baku, 2 June / Trend corr I. Khalilova/ On 3 June, Azerbaijan's semi-state Kapital Bank and Black Sea Trade & Development Bank will sign agreement on allocation of a credit in the sum of $12mln for mortgage financing, Samira Sharifova, Director of Strategic Development & Marketing Department of Kapital Bank, said on 2 June.
On behalf of the Azerbaijani bank the agreement will be undersigned by Chairman of the Board Rauf Rzayev, on behalf of the Black Sea bank by Director for Financial Institutes Andrei Butin.
Black Sea Bank will allot the credit for 6 years; the same will do Kapital Bank under about 12-13% interest rate.
According to Sharifova, through the funds of the Black Sea Trade & Development Bank Kapital Bank will commence implementation of its own mortgage program.
The first mortgage credit ($8mln) was allocated by the Black Sea bank to Texnika Bank for six years under libor+3.7% interest rate.
Presently, banks credit purchase of dwelling premises through their own programs, because Azerbaijan Mortgage Fund (AMF) attached to the National Bank of Azerbaijan suspended allocation of new mortgage credits in summer 2007 due to lack of funds. So far, a total of AZN 46mln has been allocated via AMF through budget funds for up to 15 years under 4-8% interest rate.
On 2 June, official rate totalled 0.8201 AZN/USD.
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